Audio 3:30
Tasmanian NBN rollout faces more problems

Lexi MetherellUpdated
Sat Oct 12 09:33:00 EST 2013

The NBN rollout in Tasmania is facing more problems. AM has obtained figures which suggest there's been no progress in Tasmania for two months. The company responsible, Visionstream blames asbestos problems for the slowdown, but is trying to claim tens of millions of dollars more on top of its existing contract from NBNCo.

Transcript

ELIZABETH JACKSON: Tasmania was supposed to be the first state to be entirely hooked up to the National Broadband Network. But there's more evidence this morning of the difficulties the rollout is facing in the state and questions over the relationship between the NBN Co and the contractor Visionstream.

Saturday AM has obtained figures which suggest there's no progress in Tasmania and there hasn't been any progress for two months.

Lexi Metherell reports.

LEXI METHERELL: In March last year NBN Co signed a $300 million contract with Visionstream to deliver fibre broadband across Tasmania. Now that relationship has soured.

MALCOLM TURNBULL: There is clearly a serious problem between Visionstream and NBN Co.

LEXI METHERELL: This week on ABC Radio in Tasmania the Communications Minister, Malcolm Turnbull, declared the project has stalled in the state.

MALCOLM TURNBULL: At this stage, Visionstream is not building anything and it's not, you know... there is a serious problem there which we've got to address.

LEXI METHERELL: Saturday AM has obtained those figures. They show that, as of the 12th of August this year, fibre had passed about 32,000 homes in Tasmania. And as of this week the figure remains the same.

When asked why there's been no progress, Visionstream released a short statement, saying:

VISIONSTREAM STATEMENT (voiceover): Current work volumes are limited by asbestos-related work delays. However, Visionstream is working with NBN Co and Telstra to commence construction of works as it is released.

LEXI METHERELL: Saturday AM understands that the slowdown in Visionstream's work in Tasmania happened as it began lobbying NBN Co for tens of millions of dollars more, citing higher costs.

TONY COOK: I would call on Visionstream to come out and make comment as to why the numbers haven't changed, to put contractors, to put Tasmanians at ease that the contract continues as it would normally do.

LEXI METHERELL: So have contractors had work rolling out fibre since August?

TONY COOK: No.

LEXI METHERELL: So that does suggest, then, that the rollout has stalled in Tasmania.

TONY COOK: In the south of Tasmania, there's certainly been no external contracts to Visionstream rolling out fibre or installing conduit from pit to pit.

But in the north of the state, in Launceston, we've certainly had a handful of contractors out there performing operations. So it does appear to be a little bit of a different management regime in the north of the state versus the south of the state - but it really shouldn't. It's one contract.

LEXI METHERELL: Meanwhile, former communications minister under Labor, Stephen Conroy, has broken his silence. As Malcolm Turnbull continues to lash the former government for failing to meet key rollout targets, Mr Conroy has conceded, in hindsight, he would have done things differently.

STEPHEN CONROY: I think we underestimated the capacity of the construction industry to respond to the challenge, and that has led to the majority of the publicity around the alleged blowouts - not that anyone can point to one.

So the construction model... I think it's fair to say the construction model could be legitimately criticised.